10-Year Note Speculators boosted record bearish bets higher this week

Large bond speculators pushed their record high bearish net positions higher in the 10-Year Note futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of 10-Year Note futures, traded by large speculators and hedge funds, totaled a net position of -590,128 contracts in the data reported through Tuesday July 31st. This was a weekly bearish gain of -80,630 contracts from the previous week which had a total of -509,498 net contracts.

The speculative position has now made a new bearish record high for a second week in a row. Overall, the10-year bearish bets have increased for three straight weeks (3 week change of -150,980 contracts).

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 783,016 contracts on the week. This was a weekly rise of 84,512 contracts from the total net of 698,504 contracts reported the previous week.

IEF ETF:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the 7-10 Year Treasury Bond ETF (IEF) closed at approximately $101.58 which was a drop of $-0.01 from the previous close of $101.59, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets. The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

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